Administrative tasks can take a lot out of SMEs. Not only do they require quite a bit of time to finish, but they can also cost a lot of money because of it. However, they are often an important element in ensuring everything works accordingly and that the business has a chance to thrive.
The burden is especially felt in the HR department. HR administration can take a lot of time, which can cause problems. If the staff has to spend the majority of their time in simple administrative things then they don’t have enough time to help employees grow. The less time you need to spend on solving mundane tasks the more you can focus on solving complex hurdles that keep people from fulfilling their potential.
But there are ways SMEs can change this. Implementing some of the strategies mentioned below could have a huge boost to HR administration. So, what are those strategies SMEs should be utilising?
1. Identify operational vs. regulatory administration
Administrative tasks can be divided roughly into two separate categories. You have operational tasks which are those that ensure your company runs efficiently. It includes things like payroll management and recruitment, for example. The other category is regulatory administration which are the mandatory tasks you must do. These change from country to country and the regulatory landscape in the UK looks different from UAE.
For many SMEs, the latter category is the problematic one. It can cost a lot for smaller companies to take care of things like employee regulation and tax planning. However, if you are aware of what you need, you can plan and prioritise these administrative tasks better.
2.Prioritize the most important administrative tasks
As eluded to above, you need to start prioritizing your administrative tasks. If you don’t know what the key tasks are, you are more likely to waste time doing the wrong things. But when you prioritise your tasks, you will waste less energy and reap the benefits of administration.
The key to successful prioritization is the ability to distinguish tasks. You should always divide administrative work to important and unimportant and further to urgent and non-urgent. The important and urgent tasks need to most attention. These are the ones that provide the biggest benefit to your business and which might have severe negative consequences if you miss deadlines, for example.
3. Outsource some administrative tasks
For SMEs, outsourcing is a valuable tool to take advantage of. it’s a mistake to assume that it would cost a lot of money, which is something small businesses can’t afford to do. But the right kind of outsourcing can actually make your business money. With outsourcing, you can save time and get help from professionals to do tasks you might not be equipped to handle in-house.
In terms of HR, outsourcing can work in things like payroll, recruitment and talent development. All these have administrative areas that can benefit from outsourcing. The key is to just pay enough attention to who you outsource to. It takes a bit of time to ensure you have the right help.
4. Use technology to your advantage
Among the most important ways to reduce HR administration is to unleash the power of technology. Digital tools can solve countless administrative tasks and streamline how HR operates. The implementation of technology can seem daunting but it will start paying itself back almost immediately. For example, there is an idea out there that technology costs a lot of money but the data isn’t there to back this claim.
Simple HR software for SMEs can solve key tasks and without a huge cost. This is because modern technology takes advantage of things like scaling and the cloud. Furthermore, software is constantly improving with things like artificial intelligence and machine learning so the benefits of these digital tools far outweigh the costs.
5. Integrate HR administration with the rest of the business
Finally, it’s important to ensure your HR software integrates with the other departments in the business. Proper integration gives you a lot more data that can help improve the effectiveness of your company. It can also reduce the burden in different ways and make it easier for the administrative teams to handle their tasks. Things like linking your payroll with the accounting software can have a huge impact on how well your business is operating.
The above five ways can help you reduce HR administrative tasks and save time and money. The best way is to start by taking a closer look at your current administrative issues, identifying the areas that need fixing the most. With the right priorities and the correct HR software for SMEs, you will soon find your business operate smoother and more efficiently.
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